Refer to Figure 3-1. An increase in the price of a substitute would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
C
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Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A) Unusually good weather causes the wheat crop to be larger than normal. B) Both the labor force and the population increased. C) Winter storms cause factories in the north to be shut down for several weeks. D) Government spending increased causing aggregate demand to increase.
Is it more efficient for a group of musicians to perform a show "unplugged" (with acoustic instruments) or with state-of-the-art electric instruments?
A) Unplugged is more efficient because the instruments are considerably less expensive to operate. B) It depends on what the musicians are trying to accomplish. C) The use of electric instruments is more efficient because acoustic instruments have become more expensive in recent years. D) It depends exclusively on the relative ratios of energy output to energy input in each instrument class.
Military spending is a good example of an automatic stabilizer
a. True b. False Indicate whether the statement is true or false
Those who desire that policymakers stabilize the economy would advocate which of the following when aggregate demand is insufficient to ensure full employment?
a. decrease the money supply b. increase taxes c. increase government expenditures d. Do nothing and let markets correct themselves.